Lord Falconer of Thoroton: On 15 December 2004, I informed the House that I had warmly welcomed Sir David Clementi's report on the regulation of legal services in England and Wales and broadly accepted his main recommendations. Since publication of the report, I have met key stakeholders, including consumer groups, a number of times. In the course of these meetings we have built a strong consensus in support of consumer-focused reform of legal services.
	I will publish a White Paper later this year. I will set out detailed proposals for a legal services board. Regulatory powers will be vested in the board, and delegated by it to the professional bodies, as long as they meet the standards the board sets. The professional bodies will be required to separate their regulatory and representative functions.
	The White Paper will set out the arrangements for appointing members to the legal services board, and will propose a lay chair and a lay majority with appointments being made on merit, by the Secretary of State for Constitutional Affairs. The board will have a range of sanctions available. The White Paper will set these out, but I expect them to include setting targets, imposing fines, issuing guidance, directing a professional body and removing one or more regulatory powers, with the board ultimately having the power to remove regulatory powers from any professional body which has failed. Taken together, these arrangements provide a robust framework that will promote consumer interests.
	I accept Sir David's recommendation for an office for legal complaints. This will be simpler for consumers to use and understand and will provide consistent, fair and professional handling of cases for all complainants. As with the Legal Services Board, the White Paper will set out the detailed arrangements, but I expect the office will also be led by a board with a lay chair and a lay majority.
	I warmly welcome Sir David's proposals to facilitate the creation of new business structures. Non-lawyers will be able for the first time to become managers, owners or investors in legal practices. This will create an opportunity to bring in new capital and develop new ways of working that should benefit consumers. Robust safeguards will be established to protect the consumer and the profession's reputation.
	Many of the changes that will be outlined in the White Paper will require legislation and I intend to bring forward that legislation when parliamentary time allows. I am committed to legislating to bring the regulatory framework I have described into full effect.
	I can announce today that I have set up a consumer panel to advise the Government as we take forward reforms. The panel will comprise representatives from Citizens Advice, the Federation of Small Businesses, the National Consumer Council, the Welsh Consumer Council and Which?.
	Going forward, I will continue to work closely with all interested parties to ensure that we establish a new framework for the regulation of legal services that protects and promotes the needs of consumers and allows the legal profession to flourish and retain its reputation as the best in the world.